tv BBC World News America PBS May 11, 2012 6:00pm-6:30pm EDT
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>> this is bbc world news america reporting from washington. greece has plunged further into uncertainty as the third attempt to form a coalition government fails. and the bad news keeps coming for the eurozone. as spanish banks try to get their finances in order, a warning that the recession could last all year. shakespeare restored, and american brings to this stage what he says is a lost play by the great bard. welcome to our viewers on pbs in america and around the globe. tonight, greece's problems have
taken a turn for the worse. a third attempt to form a coalition government has failed. it is now up to the country's president to try to find a formula that will succeed. the main parties are deeply divided over the value of austerity measures. for more on this, i was joined by our athens correspondent, mark low end. what went wrong? >> well, the bone of contention -- and what a huge bone it was -- is greece's international loan agreement with the eu and imf and all the austerity and cost-cutting that entailed. it was largely rejected in sunday's election. the two big parties, the socialists and the conservatives, supported broadly, and they will try to form a coalition government. that failed. the anti-bailout party failed too. then it fell to the socialists
to try to form a coalition government, and they have failed too. the president will have to formally hand back the mandate to form of government and try to bring all the political parties to his residence and request the formation of an emergency government. that will probably be followed by fresh elections. really, this country has just taken a massivelicatik in litical unkno, certainly a massive leaps forward into deeper political crisis for a country in the eurozone. >> what affect is this going to have on efforts to keep the country in the eurozone? >> well, to stay in the euro, greece has been told by germany that it needs to stick to cost- cutting and austerity.
if it goes backward on bailouts or austerity measures, it cannot stay in the eurozone. it will probably be forced to default on its debt and that will be followed by an exodus from the euro. the big question is, how can greece renegotiate terms of the bailout, renegotiate austerity measures, and stay in the euro? the majority of greeks want to keep the euro. if there are fresh elections within the month, then the party that came in second last sunday, who wants to get rid of all austerity, polls are showing they would probably come in first. they would form a government that wants to reject the bailout and austerity. that could really put the euro membership under jeopardy.
>> thank you very much indeed. staying with the euro crisis, tougher rules have been announced for spanish banks. they have been told to keep more money on their balance sheets among fears that some may collapse. this came among warnings from brussels that the eurozone was likely to remain in recession this year. we have this report. >> banking towers, madrid. one of the eurozone pose the biggest fears, that huge losses will hit. today, the spanish government stepped in. >> what we have to do is set up a safety net, said the finance minister. this is why. all across spain are big housing developments line and become a casualty is of a property boom that went bust. there may be 180 billion euros of potential property losses in the banking system. all of this is fueling fears
that spain might need a bailout. >> spain is right now in a vicious circle. we have record high unemployment. we of real-estate prices still dropping. we have of recession. this vicious circle is topped by a very fragile financial sector. it means everything has to be stabilized. >> now the spanish banks are to be independently audited. they will have to set aside an extra 30 billion euros to cover their losses. this is the fourth attempt to clean up spain's banks, and the spanish economy is expected to grow by 1.8% this year. the european union fears the country will still be in recession next year. >> we learned today that the eurozone is expected to contract this year. the eu says there might be growth of 1% next year, but unemployment would stay at 11%. greece is also causing acute
concern. tonight, talks failed to build a coalition. the most likely outcome is fresh elections, but there were new warnings about the need to carry out austerity measures that were part of the greek bailout deal. >> the program has to be implemented. i keep repeating myself. implementation, implementation, implementation. there are no alternative options in those countries. >> from italy, a reminder of the human cost of the crisis. effigies were hung from a bridge in rome, symbolizing the increase in suicides linked to financial difficulties. bbc news, brussels. >> to discuss all the economic news today and what the cumulative effect is likely to be, i was joined earlier in studio by a u.s. economics editor. let's start with greece. all signs seem to point to that it will eventually have to leave
the eurozone. does this matter at this stage? >> so much has been done to take the debt and put it on the public books that it will have less a severe effect than it has -- than it would previously have done, but the greek people want to continue with the euro. it would be traumatic. we're going to hear that you have got to stick with these terms. likewise, the greek politicians will say no way. it is very unclear right now what is going to happen. >> it is not just greece. the whole of europe is in trouble. several countries are in deep recession. how much can the eurozone take before it just falls apart? >> [laughter] i really believe there is a deep commitment that they will continue. the question is, will the periphery countries -- greece will be the first one to go. banks have started to make plans for, if a to fallout, how will
they be able to manage the debt. spain is unlikely to go. it is one of the largest economies in the world. we have not prepared for that. financial mechanisms are not ready to let that happen. i think there will be much more work done to keep spain on track. it has the ability to make the reforms and get moving. >> even though spain those of banks are in serious trouble again. it all seems terribly piecemeal, the way things are being stopped each time a new politician appears. how long has spain got? >> this is their fourth attempt to clean up the banking system. you are right. it is unlikely to be enough. they're likely to have to come back. it is a little too late each time it happens, but europe has kept moving forward. by forming a big bailout fund in europe, $500 billion, they do
actually have the resources now, backed up by the additional one trillion dollars that the ims has in their back price -- the imf has in their back pocket. it would be hugely risky if we allow the monetary project to fail. >> could all this but to the u.s. back into recession? >> it could. political uncertainty is already dampening growth in the united states by about a quarter of a percentage point. it could worsen. it is a big risk for president obama and that is why he has been working so hard to make sure that they keep moving forward, that they do compromise and reach agreements. >> thank you very much. america has other financial news to worry about. more red tape could come to wall street after jpmorgan announced an unexpected loss of two billion dollars. is a mass of the embarrassment for america's biggest bank and one that could reignite debate on tighter banking regulations.
our correspondent reports. >> this is the image of one of wall street's most famous banks. >> when the economy tumbled, jpmorgan chase worked one-on-one with homeowners. >> by j.p. morgan has to own up to losses after big trading mistakes. they were caught up in financial gambles that backfired. one trader, nicknamed the london whale voldemort, is believed to be behind the trading. >> this strategy was flawed, poorly executed, poorly monitored. it was more volatile than we thought. it is obvious at this point that there were many errors, sloppiness and bad judgment. >> the trading involved this office in the city of london.
in line with normal practice, the bank looks at all the risks it has built up and decided to take out an insurance policy. put simply, that strategy went wrong. the banking industry on both sides of the atlantic has been trying to water down proposals for tougher regulation, but some experts say the latest jpmorgan loss would dramatically shift the debate. >> for those who are fed up with bailing out these big institutions, for those of us who are fed up with bankers and traders making millions of dollars in bonuses each year and these firms existing for their benefit instead of the benefit of the shareholders, this is a watershed moment. >> with its share price plunging today, it is certainly a major blow for the wall street giant. it seems clear the story is far from over. >> this is the way forward.
>> in other news, members of the opposition syrian national council appeared divided over whether al-qaeda may have been responsible for thursday's large bomb attack in damascus. at least 55 people were killed in twin car bombings. the head of the council suggested al-qaeda could have been involved because of what he said were linked to the syrian government. but the president's regime says the blasts were the work of terrorists. the chinese legal activist chen guangcheng says he has made no progress in his efforts to leave the country. he told the bbc has not been able to apply for a passport. he has been in hospital since leaving the american embassy, where he sought refuge after escaping house arrest. a chicago jury has found the former brother-in-law of actress jennifer hudson guilty of murdering her mother, brother and nephew.
he faces a mandatory sentence of life in prison. turning now to a scandal that has rocked the british political establishment, the former editor of two news international tabloids has been telling an ethics inquiry about her close relationship with top politicians in london. rebekah brooks said she used to exchange text messages with prime minister david cameron at least once a week and that he would occasionally sign off with, "lol," which he believed meant lots of love. >> the woman who so recently was such a significant member of the media, rebekah brooks, summoned today to answer questions about the unseen world of the press and politicians. >> the witness today is rebekah brooks. >> rebekah brooks resigned from
news international shortly after she was investigated for phone hacking. >> i received some indirect messages from number 10, no. 11, home office, foreign office. >> tony blair? >> yes. >> mr. gramm? >> no. >> it has been reported in relation to mr. cameron that you receive the message of support along the lines, "keep your head up." >> i do not think it was those exact words, but along those lines. >> did you also receive a message along the lines, "sorry i could not have been as loyal to you as i have been, but mr. millard and had me on the run."
or words to that effect. >> similar, but not directly. >> she denied that she and mr. cameron texting each other up to a dozen times a day, which would have been a relief to downing street, but not this. >> occasionally he would sign them off lol, lots of love, intel i told him it meant laugh out loud, and then he did not sign off that way anymore. >> that is mildly embarrassing. this is politically troublesome. the inquiry heard how jeremy hunt and his office had asked news international to guide the government's position over phone hacking. counsel read from an e-mail mrs. brooks had received from news corp. executive. >> they are now starting to look into phone hacking practices,
to indict him privately in the coming weeks and get #10's positioning. do you know what that was about? >> i think it speaks for itself. >> tonight mr. hunt's office denied he asked news international for any such guidance. one other minister was mentioned several times, the chancellor george osborne. rebekah brooks conceded she had spoken to him privately in regard to the bid to take control of b-sky-b. >> i did have a conversation with mr. osborn about it in 2010. >> do you think it was inappropriate conversation? >> i think it was an entirely appropriate conversation. >> rebekah brooks gave evidence for nearly five hours. what conclusions can we draw from it? it certainly seems to confirm the coziness that existed between news international and
some of those in government and raised new questions about judgments made and decisions taken. >> you are watching bbc world news america. still to come, anger spilling onto the streets. thousands show solidarity with a prisoner in an israeli jail. efforts to slow down climate change have mostly focused on reducing emissions and greenhouse gases. now i high-tech facility in norway could unlock the key. >> it has taken six years and a billion dollars, but the world's biggest tax center for carbon capture and storage is finally opened. norway produces about 3% of the world's fossil fuels, and politicians, including the prime
minister, believe they bear responsibility for were developing the technology. >> that is a very important technology if you are going to be able to solve one of the main challenges we are facing, the need for increasing the energy production in the world and at the same time being able to reduce future aemissions. >> the site is next door to a power station and oil refinery. carbon dioxide flows into the facility. it is piped to various pieces of equipment being tested. the biggest is an absorption tower. gas flows of birds while a liquid chemical trickles down. it asserts -- flows upward while a liquid chemical trickles down. it absorbs co2. the result, coal powered fire stations without greenhouse gases.
>> it is something we need to support fossil fuel usage. there is no problem with fossil fuels if we can capture this year to remissions. >> carbon capture technology is already being used around the world, but it is too expensive. what this center hopes to do is test systems one against each other to bring the price down to a level where carbon capture can be used systematically and power stations around the world. >> thousands of palestinians took to the streets in gaza, the west bank and jerusalem today in solidarity with prisoners on hunger strike in israeli jails. what began 47 days ago with two men protesting their detention without trial has now escalated to more than 1500 prisoners on strike. it is a new political tactic adopted by the palestinians in response to the stalled peace
process. >> in the west bank city, anger at the plight of the palestinian hunger strikers is slowly coming to the boil. these protesters want israel to give in to the prisoners' demands of better conditions. the growing frustration at the state of deadlock has taken time to reach the streets. but if it is there now. a few days earlier, a meeting to support one of the hunger strikers was only sparsely attended. >> his mother told me of her disappointment at the turnout on that day. like the other prisoners, their son is refusing food, but sometimes excepting food and vitamins intravenously. that makes it hard for both the israeli authorities and his supporters to know when his deteriorating health will become critical.
some of the prisoners were detained without trial, without knowing the evidence against them. israel stresses that most were convicted in court, many of deathly crimes against civilians. >> it is difficult when you deal with someone who wants to commit suicide. suicide bombers are prepared to blow themselves up and went to kill innocent people. these prisoners want to kill themselves for their islamic cause. it is a challenge. >> there is no prospect of meaningful talks soon with israel, so the present under strikes are a new tactic, a new front line. this is another. israel built these farms in the jordan valley on land captured in the 1967 war. international law says they are illegal settlements but israel says they are not. palestinians want an international boycott of this food.
they have had successes. a co-op recently expanded its measures against such broad use. the farmers feel the effects, but it will not force them out. >> they will just go and sell it in other places. they will not have any trouble. >> these clashes between palestinian protesters and israeli police came after friday prayers. the situation outside the prison walls here depends on the health crisis unfolding within them. bbc news, jerusalem. >> now, he is perhaps the most famous playwright of all-time, and his masterpieces are still performed and revered around the globe, but until recently, one of shakespeare pose a pieces was unknown. now, a shakespeare scholar has
attempted to recreate the bards so-called lost play. it has just had a premiere at university in indiana. >> mylar received my daughter and me. come and be greeted. >> it has arranged marriages. late night seduction. >> burns with one constance deal that chides her boldness. >> but is it shakespeare? ofis called the history cardinio and it is considered a lost shakespeare play, written by the bard and his young collaborator. the only remaining clue is a 1728 adaptation by a noted shakespeare imitator who called his play double faucet. >> the 18th century text we have
has been seriously messed with. >> gary taylor has spent years trying to uncover shakespeare's original voice. >> the first thing you have to do is to identify what it's come from the 18th century. you have to get rid of those. you still have to fill in some blanks, and to do that, i have to write material that either sounds like shakespeare or sounds like fletcher. >> after decades of research, revision and public reading, this marks the first full-scale production. in the audience, shakespeare scholars from around the world ready to cast a critical eye on the lost and found play. >> what are you? watch the starlet's night.
>> there is so much richness in the script, so much presence. it does work on me like a shakespeare play does. it is like seeing a shakespeare play for the first time. that never happens, of course. >> it seems to be shakespearean. >> but like any good shakespearean drama, conflict remains. taylor will help to convince doubters when he publishes the complete works of shakespeare in 2016. that is the four hundredth anniversary of the bard's death. bbc news, indianapolis. >> it just goes to show you can never get enough shakespeare. that brings today's show to a close, but you can find constant updates on our website and see what we are working on. go to our facebook page. for all of us here, have a very good weekend.
>> make sense of international news at bbc.com/news. >> funding was made possible by -- the freeman foundation of new york, stowe, vermont, and honolulu, newman's own foundation, and union bank. >> at union bank, our relationship managers use their expertise in global finance to guide you through the business strategies and opportunities of international commerce. we put our extended, global network to work for a wide range of companies, from small businesses to major corporations. ?hat can we do forou